Institutional Theory

Definition: Institutional Theory is a framework for analyzing organizations and their behavior within the context of the broader social, political, and cultural environment. It focuses on how institutions—defined as established norms, rules, and beliefs—shape organizational structures, practices, and decisions. This theory highlights that organizations are not solely driven by efficiency or economic factors but also by the need to conform to institutional expectations to gain legitimacy, stability, and resources.

💡

Learn more about Institutional Theory.

More on corporate governance: 3P Framework, Agency Problem, Belief System, Board of Directors, Boundary System, more on corporate governance...

MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.

Add MBA Brief to your desktop / iPad